Their business model is based on selling a high quantity at very low profit margins, i believe less than 5%
You spend $6000/year there, at a guess that'll be $300 profit at best.
Any markdowns (returns/spoilage/theft) then have a huge impact on the profit. Theoretical example fairy lights profit of $1 from $20. You lose one set of lights and have to sell 19 more to pay for it.
As a result they will have a strict returns policy amongst other things, probably with pressure put on customer services to adhere to the rules.
It leads to individual cases that on the face of it seem counter-productive, but will probably be saving them significant amounts money overall.
You spend $6000/year there, at a guess that'll be $300 profit at best.
Any markdowns (returns/spoilage/theft) then have a huge impact on the profit. Theoretical example fairy lights profit of $1 from $20. You lose one set of lights and have to sell 19 more to pay for it.
As a result they will have a strict returns policy amongst other things, probably with pressure put on customer services to adhere to the rules.
It leads to individual cases that on the face of it seem counter-productive, but will probably be saving them significant amounts money overall.